1.1                          A bill for an act 
  1.2             relating to private property; providing for the 
  1.3             Private Property Protection Act; proposing coding for 
  1.4             new law as Minnesota Statutes, chapter 516. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [516.01] [CITATION.] 
  1.7      Sections 1 to 8 are the Private Property Protection Act. 
  1.8      Sec. 2.  [516.02] [PRIVATE PROPERTY PROTECTION POLICY.] 
  1.9      (a) The legislature declares that: 
  1.10     (1) it is the policy of the state that when state and local 
  1.11  regulatory programs reduce the market value of private property 
  1.12  and do not, through their implementation, abate a public 
  1.13  nuisance affecting the public health, safety, morals, or general 
  1.14  welfare, it is fair and appropriate that the state or the 
  1.15  locality compensate the property owner for the loss in market 
  1.16  value of the property caused by the implementation of the 
  1.17  regulatory program; and 
  1.18     (2) it is the policy of the state that fair and appropriate 
  1.19  compensation should be provided to property owners in cases 
  1.20  involving regulatory programs which abate a public nuisance when 
  1.21  the property owner neither contributed to the public nuisance 
  1.22  nor acquired the property knowing of the public nuisance nor 
  1.23  acquired the property in circumstances where the property owner 
  1.24  should have known about the nuisance based upon prevailing 
  1.25  community standards. 
  2.1      (b) To address these public policy concerns, a fair and 
  2.2   equitable compensation system is established. 
  2.3      Sec. 3.  [516.03] [INVERSE CONDEMNATION.] 
  2.4      Subdivision 1.  [REGULATORY TAKINGS.] Whenever 
  2.5   implementation by the state or any of its political subdivisions 
  2.6   of any regulatory program operates to reduce the fair market 
  2.7   value of real property for the uses permitted at the time the 
  2.8   owner acquired the title, the property has been taken for the 
  2.9   use of the public.  The regulatory programs include, but are not 
  2.10  limited to, land use planning or zoning programs. 
  2.11     Subd. 2.  [COMPENSATION REQUIRED; REMEDIES; ATTORNEY 
  2.12  FEES.] (a) The owner or user may require condemnation by, and 
  2.13  just compensation from, the governmental unit imposing the 
  2.14  regulation resulting in decreased value, or to receive 
  2.15  compensation for the reduction in value caused by government 
  2.16  action, provided that the decrease in value is at least ten 
  2.17  percent of the fair market value of the property or $7,500, 
  2.18  whichever is less.  If a regulatory program implemented by a 
  2.19  political subdivision is required by the state, the state is 
  2.20  liable for the compensation required under this section.  
  2.21     (b) In an action under this section, the owner of the 
  2.22  affected property may elect to: 
  2.23     (1) retain title to the property and recover a sum equal to 
  2.24  the reduction in the fair market value of the property; or 
  2.25     (2) relinquish title to the property to the state or 
  2.26  political subdivision and recover the fair market value of the 
  2.27  property. 
  2.28     (c) Valuation of property under this section must be 
  2.29  accomplished in accordance with the procedures for determining 
  2.30  damages under chapter 117.  
  2.31     (d) A plaintiff who prevails in an action under this 
  2.32  section is also entitled to costs and reasonable attorney fees. 
  2.33     (e) When more than one governmental unit is involved, the 
  2.34  court shall determine the proportion each unit is required to 
  2.35  contribute to compensation. 
  2.36     Subd. 3.  [FAIR MARKET VALUE.] The compensation must be for 
  3.1   the full value of the interest taken or for the full amount of 
  3.2   decrease in fair market value. 
  3.3      Subd. 4.  [CONDITIONAL WAIVERS PROHIBITED.] (a) 
  3.4   Governmental units subject to sections 516.01 to 516.08 cannot 
  3.5   make waiver of these provisions a condition for approval of the 
  3.6   use of real property or the issuance of any permit or other 
  3.7   entitlement. 
  3.8      (b) Plaintiffs may accept an approval of use, permit, or 
  3.9   other entitlement granted by the governmental unit without 
  3.10  compromising their rights under sections 516.01 to 516.08 if: 
  3.11     (1) a written reservation of rights is made at the time of 
  3.12  acceptance of the authorization, permit, or other entitlement; 
  3.13  or 
  3.14     (2) by oral statement made before the governmental unit 
  3.15  granting the authorization, permit, or other entitlement at a 
  3.16  public meeting at which the governmental unit renders its 
  3.17  decision. 
  3.18     (c) The owner or user may make the reservation in either or 
  3.19  both forms. 
  3.20     Sec. 4.  [516.04] [EXCEPTIONS.] 
  3.21     Compensation is not required under sections 516.01 to 
  3.22  516.08 if the regulatory program is an exercise of the police 
  3.23  power to prevent uses noxious in fact or demonstrable harm to 
  3.24  the health and safety of the public.  A use is a noxious use if, 
  3.25  and only if, it amounts to a public nuisance in fact.  
  3.26  Determination by the governmental unit involved that a use is a 
  3.27  noxious use or poses a demonstrable harm to public health and 
  3.28  safety is binding upon a court.  Review of the governmental unit 
  3.29  determination is de novo. 
  3.30     Sec. 5.  [516.05] [APPLICATION; STATUTE OF LIMITATIONS.] 
  3.31     (a) Section 516.03 applies to implementation of a 
  3.32  regulatory program if the application of the regulatory program 
  3.33  to the real property occurs on or after July 1, 1998.  For the 
  3.34  purposes of this section, the date on which an application of a 
  3.35  regulatory program occurs is the date on which the regulatory 
  3.36  program first restricts, limits, or otherwise infringes upon a 
  4.1   right to real property and does not mean the date of enactment 
  4.2   of a law or the date of adoption of a rule establishing the 
  4.3   regulatory program. 
  4.4      (b) An action under this section must be brought within six 
  4.5   years after the owner of real property discovers that the 
  4.6   regulatory program affects the property or within six years 
  4.7   after the state or political subdivision seeks to enforce 
  4.8   application of the regulatory program to the property by formal 
  4.9   written notice, whichever is earlier. 
  4.10     Sec. 6.  [516.06] [REGULATORY ROLLBACK.] 
  4.11     Subdivision 1.  [CONDITIONAL RELAXATION AUTHORIZED.] If the 
  4.12  governmental unit of which inverse condemnation is successfully 
  4.13  required under section 516.03 is unwilling or unable to pay the 
  4.14  costs awarded, it may instead relax the land use planning, 
  4.15  zoning, or other regulatory program as it affects the 
  4.16  plaintiff's land and all similarly situated land in the 
  4.17  jurisdiction in which the regulatory program is in effect to the 
  4.18  level of regulation in place as of the time the owner acquired 
  4.19  title.  The governmental unit is still liable to the plaintiff 
  4.20  landowner or user for the reasonable and necessary costs of the 
  4.21  inverse condemnation action plus any actual and demonstrable 
  4.22  economic losses caused the plaintiff by regulation during the 
  4.23  period in which it was in effect. 
  4.24     Subd. 2.  [CONSTITUTIONAL REQUIREMENTS.] This section does 
  4.25  not affect any remedy that is constitutionally required. 
  4.26     Subd. 3.  [RELAXATION PROCEDURE.] Notwithstanding other 
  4.27  law, the governmental unit subject to an award of compensation 
  4.28  under this act may elect to relax the land use planning, zoning, 
  4.29  or other regulatory program without further public hearings, 
  4.30  proceedings, or environmental review required.  If the 
  4.31  governmental unit elects to so relax the affected regulatory 
  4.32  program, the previously effective program is automatically in 
  4.33  effect. 
  4.34     Subd. 4.  [CONTINUANCE OF ENTITLEMENT.] A permit, 
  4.35  authorization, or other entitlement granted under a program 
  4.36  rolled back under this section continues to be valid, 
  5.1   notwithstanding a law in the program reinstated by the rollback. 
  5.2      Sec. 7.  [516.07] [LEGAL CHALLENGES.] 
  5.3      Sections 516.01 to 516.08 do not preclude property owners 
  5.4   from bringing legal challenges to regulatory programs affected 
  5.5   by these sections in instances in which the regulation caused 
  5.6   diminution in value of the property for the uses permitted at 
  5.7   the time the owner acquired title, nor preclude property owners 
  5.8   from bringing legal challenges to regulatory programs affected 
  5.9   by these sections based on other law. 
  5.10     Sec. 8.  [516.08] [TAX ADJUSTMENT.] 
  5.11     Whenever, after June 30, 1998, the state or any of its 
  5.12  political subdivisions imposes, changes, or implements any land 
  5.13  use planning, zoning, or other regulatory program in such a way 
  5.14  as to reduce the previous fair market value of a taxpayer's 
  5.15  property, the county auditor shall, on or before the next April 
  5.16  1, adjust the taxpayer's valuation downward by an amount equal 
  5.17  to the difference between the fair market value of the property 
  5.18  under the new regulatory program and the previous fair market 
  5.19  value. 
  5.20     Sec. 9.  [EFFECTIVE DATE.] 
  5.21     Sections 1 to 8 are effective July 1, 1998.